Vale (NYSE:VALE) says it is nearing the conclusion of a deal to sell a stake in Mozambique’s Moatize coal project to Japan’s Mitsui (OTCPK:MITSF, OTCPK:MITSY), culminating nearly three years of talks.
Vale says it expects to receive a $733M initial payment from Mitsui from the equity sale by the end of this month, and receive $2.7B more after the financing for the mine project and transportation system is concluded; Mitsui would have an option to transfer the stake back to Vale if financing is not completed by December.
Mitsui is buying 15% of Vale’s 95% share in the coal mine, as well as 50% of Vale’s 70% holding in a railway system connecting production at the mine to the Nacala port in Mozambique.
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